Where's the Top?

Editor's Note:

Our market bias is unchanged. We're still bullish for 2009. Yet I was somewhat surprised at how fast the market rebounded. Now the S&P 500 is nearing its September highs.

Here's something to consider: The 1100-1120-1135 zone in the S&P 500 could be major resistance. The 50% retracement of the bear market is about 1120. A lot of investors (big and small) are aiming for 1120 as their unofficial year-end target. So what happens if we get there in a couple of weeks and still have November and December to go?

Stocks might see some profit taking once the fiscal year ends for many fund managers after Halloween.

Let's just say I'm still bullish but growing even more selective about adding new long-term multi-month investments to the newsletter.

No new plays tonight.